A smart ruling on solar energy

With a legal cloud hanging over the future of solar energy in Iowa, the Iowa Supreme Court smartly stepped in to clear the air.

The state's highest court ruled earlier this month that a small solar energy provider, Dubuque-based Eagle Point Solar, can sell energy to the city of Dubuque. That energy comes from panels installed by Eagle Point on a city building at no expense to taxpayers.

Utility companies argued that Iowa law gives them the sole right to provide power in certain defined regions, and that Eagle Point's agreement made it a 'public utility.” But the court rejected that assertion and found that the law does not preclude third-party purchase agreements between energy providers and non-taxable entities, such as governments and non-profits. Eagle Point stuck to its case through an initial rejection from the Iowa Utilities Board, a district-court ruling in its favor and now through a Supreme Court victory.

And it's very good news for the future of solar energy in Iowa.

These kind of small-scale purchase arrangements likely hold the key to the industry's growth. Local governments and other non-profit organizations that want to use and promote alternative energy options, but aren't eligible for energy tax credits, can now do so without taking on the upfront costs of installing panels.

A report by the Iowa Environmental Council contends that 20 percent of Iowa's annual electricity needs could be met using rooftop solar installations. Iowa's overall potential for solar energy production ranks 16th nationally, according to the report, which also argued that solar installation costs are falling and that an increase in solar use would create new jobs.

We understand utilities' concerns and why they fought the fight, but we think the court made the right call in ruling that Iowa law leaves room for these purchase agreements. It's a ruling that's gained national attention and praise from advocates of exploring electricity production possibilities beyond traditional, finite sources. We expect the utilities to now take their case to the Legislature. But we urge lawmakers to reject any action that would dim the lights on solar's future in Iowa.

We now hope governments and non-profits use the court's ruling as a springboard to explore the possibility of solar projects. The court has opened the door, and the sun is shining.

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